WASHINGTON (AP) — Even proponents of President Barack Obama's new savings program concede it won't be a cure-all for a nation that's saving too little for retirement. Many Americans won't initially be able to participate, and those who do may find the benefits are modest.
Yet the Obama administration is hoping that the savings program will spur Congress to take further action. Like-minded lawmakers are already pushing new legislation that would automatically enroll Americans in IRAs unless they opt out.
In his State of the Union address, Obama unveiled a new program called "myRA," for "my IRA." It's aimed at helping the roughly half of Americans with no retirement plan at work. With low initial investments, workers can invest in Treasury bonds and eventually convert the accounts into traditional IRAs.